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National Bank To Take Over And Consolidate State-Owned MKB Bank

Tamás Székely 2014.12.18.

Hungary’s PM Viktor Orbán and National Bank’s (MNB) governor György Matolcsy have held a joint press conference on Thursday morning, announcing plans for reshaping Hungary’s bank system by the consolidation of state-owned MKB Bank. The Hungarian government has given the instruction to MNB to take over the MKB Bank, which the Hungarian state bought this year from German BayernLB. Nor the government, neither MNB did provide an estimate for the costs of the reorganisation, Reuters said.

MNB governor György Matolcsy told the press that MKB would undergo a 12-18 month re-organisation and portfolio cleaning programme. “The central bank will stand behind MKB with its own balance sheet, guaranteeing its full liquidity, he said. Matolcsy also said the re-organised bank, which contained a bad bank of non-performing commercial real estate loans, may be sold via the stock exchange once the programme is completed and the bank is shored up sufficiently, Reuters reported.

PM Viktor Orbán said that Mr Matolcsy did attend the cabinet meeting on Wednesday and the situation of the banking system in Hungary have been thoroughly discussed.  “The reason why we have put the topic on the agenda is that the Hungarian banking system needs to be strengthened and to that end several decisions have to be made”, Viktor Orbán told. The plans are to turn MKB into one of the “most powerful banks in Hungary”, he said.

via MTI and reuters.com photo: Zoltán Máthé – MTI


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